Patriot Act Compliance and Identity Verification


Section 326 of the Patriot Act had US Secretary of the Treasury to develop regulations that describe the minimum standards for the customer for the opening of new accounts in certain financial institutions. The federal banking regulators together developed regulations to implement section 326. The regulation known as “CIP rule” because it requires banks, savings associations, credit unions and certain non-federally regulated banks have written customer Programs (CIP).

minimum standards established for CIPS is designed to enable financial institutions to form a reasonable suspicion about the true identity of their customers. One of the components of a CIP is to verify the identity of each customer. Another part is to scan every client against the government of the list (s) that are known or suspected terrorists or terrorist organizations.

Patriot Act Compliance and customers

When new customers open an account to get the services of a financial institution, CIP requirements and can sometimes affect the customer experience. These services may include deposit accounts, business expense accounts and other types of accounts. Clients can be individuals, corporations, partnerships, trusts, etc. The way financial institution approached identity watchlist scanning efforts bears the potential to shape the overall customer experience it. Identity verification tools and watch list checking software can play an important role in the Patriot Act compliance program is financial. Optimization of certain Patriot Act compliance efforts can lead to more effective compliance program where software tools are typically higher levels of accuracy and process efficiency. Perhaps equally important, many software tool can do this while minimizing the friction experienced by customers. As financial institutions compete for revenue, overall customer experience can contribute to brand value and bottom line financial companies.

Patriot Act Software can optimize Patriot Act Compliance

meet the specific Patriot Act compliance requirements can be costly institution, but not doing so can be much more expensive. Fines and penalties associated with inadequate Patriot Act compliance programs have been significant, but the damage to the reputation of financial institutions is not even expensive. If negative coverage erodes customer confidence, financial institution customers can choose to reduce the number of products and services they use, or perhaps completely cut their relationship with the organization. This may adversely affect the bottom line numbers and lower brand value agency. In addition, regulatory actions may divert resources – including senior level executives – from a focus on revenue and profitability while developing and implementing the necessary improvements. Patriot Act software can help financial institutions meet certain requirements, standards and protect the bottom line of the company’s

Tip :. Methods customer

As you select documents, consider offering. If this document is not well known to your staff, they will be able to spot fraud? If this is a foreign document, you will accept it only accompanied by another form of identification? You will need a certified copy of all the documents? Remember that it is important to provide a reasonable belief that you know the true identity of each customer.

Faced with identity fraud starts with waking identity verification. Be aware of the potential identity fraud risk will keep you alert to the potential of technology and deceptive individuals.


Leave a Reply

Your email address will not be published. Required fields are marked *